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Gold price runs north swiftly

Gold price (XAU/USD) attempts to come out of the woods as investors digest the fact that the Federal Reserve (Fed) will raise interest rates by 25 basis points (bps) to the 5.25%5-5.50% range. The precious metal picks strength as market participants hope July’s rate hike will be the last one this year, prompting the Fed to pause the rate-hiking spell for a longer period. Easing fears of a global recession, the United States upbeat Consumer Confidence, and expectations of the Fed announcing an interest rate peak have built pressure on the US Dollar Index (DXY). The index retreats as investors are anticipating that Fed Chair Jerome Powell won’t be much formidable about sticky inflation. After the Fed’s policy decision on Wednesday, US GDP numbers for the second quarter are in the pipeline on Thursday, keeping investors on edge.

Gold price gathers strength for a break above the immediate resistance of $1,970.00 as investors have digested a hawkish interest-rate policy from the Fed. The precious metal is consistently trading back and forth in a wide range between $1,953 and $1,968 for the past three trading sessions amid obscurity about the Fed’s guidance for the remainder of the year. A bullish crossover, represented by 20-day and 50-day Exponential Moving Averages (EMAs) at $1,951.00, indicates further strength in the bullish bias.